Newcastle Getting Their Financials In Good Shape

The significant  thrift that the Newcastle owner has shown since he bought Newcastle about 52 months ago,  seems to be finally paying off.

Mike Ashley – now having some success at Newcastle

Newcastle released their Mission Statement yesterday, and as far as we are concerned it makes for some good reading, and we are very pleased that Derek LLambias is now communicating with the fans, and we hope it continues.

Derek made it clear there would be no more trophy signings at Newcastle, but he also said the club was getting very close to breaking even,  and would likely do that this financial year, which ends next June 30th.

And the profit and loss figures over the last four seasons seems to be going in the right direction.

Here are the figures for the last four financial years with the profit or loss, all losses until this financial year ends next June, when Newcastle are thought to be able to break even and we expect may even  make a profit.

2008-2009  – £37.7M  loss

2009 – 2010 – £33.57M  loss

2010 – 2011 – £4.7M  loss

2011 – 2012 – £0M – estimate is to break even or even make a profit 

Alan Pardew even talked about the improving financial position of the Newcastle club after the game yesterday, and this is what he said:

 “What we have in place is a sound financial structure, we go forward,  and hope to achieve one of those seasons where people say we were one of those surprise teams and provided some entertainment here and there. We did today.”

“I’m hoping the owners start to get a bit more respect. I don’t think we’ll ever win everybody over for Mike and Derek and maybe myself, but at least we can look at it and say that we’re better off than most clubs from a financial position.”

“We have an owner who doesn’t want to go away, he wants to invest in the team but do it in the right manner. We are working really hard to bring in the best players we have with the finances we have.”

As we mentioned earlier today it would be nice to know what the club plans to do when they start making a profit, and whether those profits will be invested directly back into the club, which would be great if that was the case.

But Derek LLambias has said there will be no silly spending of transfer money that we saw by a number of clubs last summer.

It seems Newcastle are investing big time in two very important – youth and scouting.

And the expanded scouting under Chief  Scout Graham Carr is already paying off  handsomely,  with Newcastle having made some great buys over the last eighteen months or so.

Those buys include Yohan Cabaye (£4.5M), Mike Williamson (£1M), Ben Arfa (£5M), Gabriel Obertan (£3M), Davide Santon (£5.3M), Danny Simpson (£0.5M) and free agents Demba Ba,  Sylvain Marveaux,  Mehdi Abeid and Dan Gosling.

So there are 10 good players brought in for around £19M – which is very good business for the Newcastle club.

And of course Newcastle have some great young players coming through the ranks like Shane Ferguson, Sammy Ameobi, James Tavernier, Haris Vukic, Michael Richardson, Jeff Henderson  and Paul Dummet to mention only a few.

Whether you love or hate Newcastle owner Mike Ashley,  the Tyneside club is looking in good shape at the moment, on many fronts.

Comments welcome.

169 comments so far

  • ilovetoon8788

    Oct 17, 2011 at 2:19 PM

    Comment #1

    alot of our attacks goes through obertan’s flank
    because of his pace. but he doesnt have the flair or
    creativity to match it. his decision making is abysmal.
    he gets to the final third after sprinting and he doesnt
    know what to do after that and loses the ball.

    if he can improve on that aspect of his game, our
    strikers can score alot more. most of our goals comes
    from jonas flanks. obertan needs to be dropped to
    wake up his ideas.

  • Dannyo

    Oct 17, 2011 at 2:25 PM

    Comment #2

    Obviously there are som fantastic players out there, young, energetic and very talented. The way we have picked up these sort of players is amazing. I did not think it could be done, but it’s most certainly happening. Can u build a top 8 side for less than £100 mill? Yes, it seems u can.
    And what Ed is not mentioning here, is that we have profited £50 million in fees, so we’ve spent -£50 mill on transfers since MAs arrival. And now we’re 4th in the league after 8 matches.
    Yes, u CAN build even a top 6 team for far less than £100 mill. We might, just might, show that this year.

  • wynsleap

    Oct 17, 2011 at 2:36 PM

    Comment #3

    “We have an owner who wants to invest in the team” says Pardew.
    Well I’m sorry Alan, but we have yet to see evidence of that. In his tenure here he must be around £40million in profit on transfer dealings and he’s getting some damned good advertising exposure for his company for nothing it would seem.
    Yes, he may have spent a few quid but that was to purchase the club and then a bit more after that because he didn’t do due diligence which he should have done.
    I’m afraid I’ve yet to be convinced about our owner.
    I still think we are doing great in spite of him not because of him.

  • sirtoongospel

    Oct 17, 2011 at 2:39 PM

    Comment #4

    It’s been great to see our team play with pride and give it everything they have. All we have ever asked for is work rate and we get it from a team of genuine lads. Agree with Obertans lack of end product but maybe he will settle down when he gets used to playing regularly? He just seems to panic but his shot yesterday showed a bit of confidence, so I am prepared to give him the benefit. Marveaux very unlucky not to feature. Santon will almost surely play on Saturday instead of Simmo, and wouldn’t be surprised to see HBA replace Best. Can’t believe we have so many options!!! Still look short of another forward and two defenders. A LB and cover at CB are needed in January. If we could get those, we would be in fantastic shape. Pieters for LB, decent cover at CB and maybe a pacy forward to give us a different option. Top 7 finish. Would be remarkable.

  • G

    Oct 17, 2011 at 2:46 PM

    Comment #5

    Good to see the financials getting healthy for a change, after years of financial abuse by FFS. Also good to see the club release the mission statement the other day, managing the fans expectations. I can’t believe people believe we might be in 4th at the end of the season. Don’t get me wrong, I would love it to happen, however, we would need to be incredibly fortunate both on and off the pitch for it to happen. I think a good cup run, and a top 8 finish will keep me very happy indeed.

  • toonLYF

    Oct 17, 2011 at 2:48 PM

    Comment #6

    i go to uni in sunderland, and today, just because i was still in that europhic post-match mood i wore my newcastle top. Anyway, when i had finished and was heading for the bus stop, crossing the road with the traffic lights next to the lambton worm and that, and this taxi driver got out his taxi (on a red light) and asked me what the fuck i was doing, whilst grabbing his shirt…i was about to give some back but by this point the lights had turned to green and the queue of cars behinding him began to beep furiously…it was absolutely golden, poor poor black cat.

    i loved shola’s goal as much as cheick’s v arsenal, i also absolutely love it when stevie taylor runs over to the gallowgate at the start of the game and fires himself (and everyone else) up, awesome to see…and last but certainly not least, Pardew showed true managerial spirit yesterday, spirit i’ve only ever seen from a certain Sir Bob.

    here’s to continuing the glory at le toon.

    c’est magnifique!!!!

  • GeordieToon89

    Oct 17, 2011 at 2:52 PM

    Comment #7

    right let me get this point across.. Since when does investing money into a team mean when he sells plays he automatically hasnt spent any money?
    he signed us all our best players and has sold all ones who didnt do anything for us or wernt good enough or 1 for a outrageous fee..? Nolan wasnt worth a 5 yr deal and Cabaye is better, Barton was a liability and didnt get a fee off him.. Carroll – enough said the rest wer all mercenaries… he has proved he is willing to spend on the team but he wants to do it in an effective yet efficient way which is the best way to run a business the players he has bourght are much better than who’s gone out even though he bourght the players he sold

  • GeordieToon89

    Oct 17, 2011 at 2:55 PM

    Comment #8

    G – spot on mate its ridiculous some people actually thinking wer good enough to finish top 4 it makes me laugh like a really cant believe some fans are jumping on that band wagon after all these years weve had a good start with some average performances against some not soo good teams and we should of been beaten against QPR and Wolves, Im not denying the fact we are in a fantastic position and the team work is great the spirit is amazing but the truth is we can not say we could get champ league cos its nearly certain not to happen.. a do however believe we could make a Europa League position

  • Jail for Ashley

    Oct 17, 2011 at 2:57 PM

    Comment #9

    I can understand Ashley not wanting to make a loss,but how much can be put aside for transfers while still making a reasonable profit and keeping the players we already have.

  • GeordieToon89

    Oct 17, 2011 at 2:57 PM

    Comment #10

    a dont like Ashley btw im just being realistic in the way that if it wasnt for him we wouldnt be wer we are now cos we wouldnt have any of the players weve got now, yes can also say if it wasnt for him we wouldnt of been relegated but then a would say well thats wrong also because the team we had wer brilliant players but didnt care less about the club nothing he could do about that he just backed the managers and the players didnt perform now he doesnt want to make that mistake again and he wants the club to live within its means and still back the manager as much as the finance allows and rightly so


    Oct 17, 2011 at 2:58 PM

    Comment #11

    As long as the team are winng i dnt giv a fk to the owners . Hope end of the season v c ourself in CHAMPIAN LEAGUE 🙂

  • GeordieToon89

    Oct 17, 2011 at 3:05 PM

    Comment #12

    Jail for ashley – if you look at the finances wer paying around 50/60million a year on wages so if wer making
    £15million season tickets
    £5million on match tickets
    £1million on membership maybe
    £60million TV revenue
    £8million on league position
    £10million on club merchandise – strips n tht
    £5million on sponsorship

    so thats £104million a year income
    then we spend:
    £60million wages
    £1million pitch
    £1/1.5million youth improvement
    leaves around £40million left for whatever like repayments and transfers

  • AshtreeKid

    Oct 17, 2011 at 3:06 PM

    Comment #13

    Jamsha, dont start talking about champions league, your expectations should be that of the start of the season, dont alter them now its too early!

  • GeordieToon89

    Oct 17, 2011 at 3:10 PM

    Comment #14

    actually clubs get around £80million in TV revenue now so our income goes upto £124million and leaves around £60million for payments or transfers

  • toonfan76

    Oct 17, 2011 at 3:10 PM

    Comment #15

    At the end of the day we are in fourth spot right now, what we have to ask ourselves is can we be consistent enough through the whole season, Because that is what is needed to keep the likes of Arsenal, Liverpool and Spurs at bay. I for one think with some good luck with injuries and our good team ethic, we stand a decent chance of a top six finish. It’s a long season though and anything can happen in football. HWTL

  • Jail for Ashley

    Oct 17, 2011 at 3:11 PM

    Comment #16

    Interesting ,so do you think on them figures it would be unreasonable for us to expect to see around 20-25 million to strenghthen the team each year

  • AshtreeKid

    Oct 17, 2011 at 3:13 PM

    Comment #17

    dont forget in strengthening the team you usaually increase the wage bill

  • Milking Mikes' bulging pockets

    Oct 17, 2011 at 3:20 PM

    Comment #18

    8th is what I consider ‘par’, for this season.

    Santon must start for Simpson (he’s already responsible for 3 goals against this season).

    Obertan, as much as I’ve defended him after the Villa match, in which I thought he played a belter, he has being rubbish the last 2 games, I’d go as far as shocking yesterday. Almost each occasion the ball came to him, the attacks broke down. The one occasion he was decisive (the shot), he chose the wrong option, as Simpson needed to be played in, on the overlap. Time for a spell on the bench, Marveaux or Ben Arfa to come in.

    Perhaps Best could be dropped too. Would be harsh, however AP did say ‘keep scoring and you’ll keep the jersey’. Well, that’s 3 games without a goal now. Long enough period to justify an omission?

  • gorgonzola

    Oct 17, 2011 at 3:23 PM

    Comment #19
  • solano

    Oct 17, 2011 at 3:23 PM

    Comment #20

    A good time for the regime to release a statement that doesn’t say anything new, but does attempt to temper expectations – no one realistically, expects us to finish top 4 just as there was no one calling for “star signings” (apart from the deluded posser brigade), but I would hope to look to strengthen in the transfer windows when they come about.
    A pragmatic approach to team strengthening would suit me just fine…but there is still a stench of preparing for further sales. Maybe a scrapping of the age policy would be a good start and a re-signing of the best footballing centrehalf we have had since Albert would be a good start?

  • jakesome

    Oct 17, 2011 at 3:24 PM

    Comment #21

    is the carroll money included in this years figures or last??

  • yorkshireToon

    Oct 17, 2011 at 3:26 PM

    Comment #22

    neither all of these figures are pre player sales

  • GeordieToon89

    Oct 17, 2011 at 3:27 PM

    Comment #23

    AshtreeKid – exactly our wage bill increased this season through the new players,
    Jail for Ashley – when you think about it you dont really need to spend 20/25million every season you always need to improve yes but sometimes improvement means just 1 player in a certain position or maybe adding a couple of bargains for depth which could result in only spending like £5/£10million but people need to realise that this summer we sold players and made more than we spent but that doesnt mean we havnt improved the team or made a financial loss cos as it says in the mission statement clubs who buy players dont pay it all in one go like we do and leaves us short as we are only getting payments over the coming years so unless clubs start paying for players in one go we are always going to be spending more than we recieve in transfers (providing we actually buy players)

  • solano

    Oct 17, 2011 at 3:32 PM

    Comment #24

    Tax Return deadline October 31st…Geordie Toon 89 is doing mine as part of his accounting course 😉

  • davybtoon

    Oct 17, 2011 at 3:32 PM

    Comment #25

    how can u complain bout ashly transfer policy weve got the best team weve had for years n ashly is the one who has brought in all these players
    gettting rid of barton, nolan, carroll n jose is the best thing that in the summer and ppl can finally start to see that

    as for obertan why ppl slating him he does exactly what jonas does n his pace terrifies opponents, he does as much defensive work as jonas which is why were doin so well, granted his final ball needs improving but jonas final ball has been crap for years

  • davybtoon

    Oct 17, 2011 at 3:33 PM

    Comment #26

    we jus need to add a centre back n a striker n were not far off a great sqaud id like us to get maiga n petiers in jan

  • Geordie Jonny

    Oct 17, 2011 at 3:35 PM

    Comment #27

    Dunno why people are saying we can’t finish in the top 4 this season. Man U, Man City and Chelsea will take the top 3 spots. Then the other teams would be us, Spurs, Liverpool and maybe arsenal if they improve. We already proved we can beat Spurs and maybe arsenal. And our performances against the other teams in the league shows that we are a much better side than last year. Have some positivity for once.

  • davybtoon

    Oct 17, 2011 at 3:38 PM

    Comment #28

    fourth place is up for grabs n its between us, liverpool, spurs n arsenal fact

  • tdt

    Oct 17, 2011 at 3:39 PM

    Comment #29

    Once the club becomes profitable in terms of operating costs, which should be from the end of this season onwards, we should be using the profits to buy new players and pay back our debt to MA. This process can be subsidised by money made from the sale of players who are being replaced by the aforementioned new players.

    Eventually we’ll pay off all our debts, plus our squad will improve year on year to increase our revenue through higher league positions, attendences and hopefully European football next season or the season after that. This will increase our profits and allow us to strengthen the squad further.

    Doesn’t that plan seem sensible, sustainable and realistic? I think AP is capable of managing the team through this process with the staff he currently has in place.

    We’ve gone through the pain of beginning this plan: namely the cull of overpaid “superstars”. Now the youth policy is beginning to come to fruition on the pitch, maybe even slightly earlier than everyone thought it would. If we continue this upward momentum in terms of youth policy and the self-sustained business model, there’s every chance that we will cement our place in the top 5-7 of the PL for years to come.

    I don’t believe that MA simply wants to make NUFC a cash cow for himself, because that’s obviously not how PL football clubs work. He also now realises that the fans will make a hell of a fuss if he starts milking the club. This has a major consequence for the team and arguably even contributed to our relegation.

    I know it’s hard for us to trust this lot, but I’ve come to the conclusion that we don’t have a choice. Hence we might as well give our full support to the team/club and hope the plan works in its entirety.

    So far so good, I’d say.

  • solano

    Oct 17, 2011 at 3:40 PM

    Comment #30

    DavyB…Martin Samuel (99% of the time an utter bearded tit)actually did a good report on us today in the Mail and it’s worth a glance but the need for player investment in order to consistently compete is abundantly clear to all but the most blinkered.

  • toonfan76

    Oct 17, 2011 at 3:41 PM

    Comment #31

    Geordie Jonny

    How have we proved we can beat Arsenal and Spurs, We drew with both of them, Maybe we could have beat them but the same could be said the other way for them, They could have beaten us.

  • Toon_Tom

    Oct 17, 2011 at 3:42 PM

    Comment #32

    Jonny > i agree and disagree. We do have a better team than last year with some cracking players that we have brought in and some that have improved (Raylor, Jonas, Krul) but i can not see us holding on to 4th spot to be fair. A decent cup run and within the top 6/7/8 would be a massive achievment for us. However, if we keep grinding out results, lifting our game against the big guns, coming out with some points this November (the month of death) then Europa is definitely a possibility. I do like your thinking tho 🙂

  • Milking Mikes' bulging pockets

    Oct 17, 2011 at 3:44 PM

    Comment #33


    Jonas has twice the work ethic of Obertan, better positional sense, uses his frame better and is clever in winning free-kicks, makes better decisions and keeps possession better.

    Hardly the same.

    Obertan seems to not want to sprint, which is his biggest asset, for some reason.

  • Jail for Ashley

    Oct 17, 2011 at 3:44 PM

    Comment #34

    Geordie Jonny,
    I was at both the Spurs and Arsenal games this year and I left after 90 minutes thinking they were draws,did I misss something

  • Toon_Tom

    Oct 17, 2011 at 3:45 PM

    Comment #35

    @32 > exactly right, that was my topic of conversation during the game aswel mate … ” Obertan is scared to sprint”

  • GeordieToon89

    Oct 17, 2011 at 3:45 PM

    Comment #36

    davybtoon – thats the point ive been trying to get across mate glad someone agrees haha

    Geordie Jonny – our depth isnt good enough to go a full season like we are and get into champ league people are being unrealistic in their expectations.. we are quite easily capable of getting unto the Europa League and that would be a massive achievement for us to kick onto the next couple of seasons and with the right investments in say 3 years we could easily be challenging at the top again

  • solano

    Oct 17, 2011 at 3:49 PM

    Comment #37

    TDT…profits to buy players and payback MA? There won’t be enough to do both, I’m afraid, and I know which one will take precedence….the best scenario is while we are doing well, MA cashes in on our increased profile and sells up to someone with a bit more footballing interest! This team has potential to develop if it is allowed to mature…the transfer windows should never be a time when the fans have to hide behind the sofa in fear of another “deal of the century” that vanishes in a puff of smoke.

  • jakesome

    Oct 17, 2011 at 3:50 PM

    Comment #38

    cheers yorkshire toon
    thats good news in regards to the uefa rulings

  • GeordieToon89

    Oct 17, 2011 at 3:50 PM

    Comment #39

    aw god davybtoon you’ve joined the unrealistic lot wheyy jump on the band wagon then when we dont get 4th yous all kick off cos we didnt finish in a position that was never going to happen..

    Jonas has done 2 crosses for goals this season so far and scored 1 himself plus he’s won free kicks for Raylor to score goals so technically more assists… am i wrong?

    Obertan has maybe 1 assist no goals and no free kicks in dangerous positions, he doesnt like a tackle and doesnt run with the ball like jonas does.. am i wrong?

    before anyone else answers and please do..
    I am not wrong its fact, also the reason why Jonas has been one of our best players this season and Obertan hasnt

  • stevep

    Oct 17, 2011 at 3:51 PM

    Comment #40

    Go knows where some people get thier info from
    80 million Sky money per club – dream on, we probably got around 30 million (which is still a lot)

    The current domestic rights, which run to 2013 and see a total of £2.1bn paid to the Premier League’s clubs by BSkyB, ESPN and the BBC, already favour the big clubs.

    Half of the money is divided equally among clubs, another 25% is divided up on the basis of final league position and the rest relative to the number of live TV appearances a club makes.

    Last season Manchester United earned £42.4m from domestic rights, while Blackpool made £21.2m”

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